SA’s banking transactions increase for 4 consecutive months despite the floods

Banks are likely to earn more than retailers as central banks start raising interest rates.

An indicator measuring South African economic activity rose for a fourth month in April even as commodity prices peaked and the worst flood in nearly three decades resulted in the deaths of more than 400 people, damage to businesses and disruption. of operations in the nation’s largest port.

BankservAfrica’s Economic Transactions Index, which measures EFT-originated transactions, rose to 136.1 from a revised 135.2 in March, signaling the resilience of South African consumers and businesses, the automated clearing house said in a note.

While the slight increase suggests a stable start to the second quarter, looming headwinds could derail economic momentum in the coming months, said Mike Schussler, chief economist at Economists.co.za, who helped develop the barometer.

South Africa’s economic growth potential, which has already been hampered by soaring oil prices, frequent power outages and flood damage in the Eastern Cape and KwaZulu-Natal provinces, is also likely to come under further pressure. due to the slowdown in global production and demand for metals.

The International Monetary Fund in April cut its global growth predicted the highest since the early months of the Covid-19 pandemic and predicted even faster inflation after Russia invaded Ukraine and China renewed its blockade of the virus.

BETI is one of the top economic scorecards for South Africa in terms of growth trends and correlates closely with the central bank’s coincidence indicator and gross domestic product data.

We live in a world where fact and fiction are confused

In times of uncertainty you need journalism you can trust. For 14 free days, you get access to a world of in-depth analysis, investigative journalism, first-rate opinion, and a host of features. Journalism strengthens democracy. Invest in the future today. You will then be charged R75 per month. You can cancel at any time and if you cancel within 14 days you will not be charged.